The dividend paid on the equity capital
The weighted average of the cost of various long-term and short-term sources of finance
The average rate of return it must earn on its investments to satisfy the various investors
The minimum rate of return it must earn on its investments to keep its investors satisfied
✅ The correct answer is D.
The cost of capital of a firm is the minimum rate of return it must earn on its investments to keep its investors satisfied.
The cost of capital of a firm is the minimum rate of return it must earn on its investments to keep its investors satisfied.